The Influence of Leadership Behaviours on Fairness Practice: An Empirical Investigation of Takaful Institutions

Abstract

This study is driven by the fact that fairness approach seems to be among the important determinant to achieve decent business performance. We highlight that there were scarce studies focusing on antecedents that would affect the level of fairness in organizations. Thus, we hypothesize that leadership factors are able to influence the fairness practice. Two domains of leadership behaviour were derived from the literature namely; task-oriented leadership and people-oriented leadership. This paper aims to examine the effect of leadership behaviour on fairness practice among Takaful employees. 223 employees responded to the survey, were employed by Takaful operators in Malaysia. Partial least squares approach was used as the main analytical procedure to test the research hypotheses. The results of the study indicate that both task-oriented leadership and people-oriented leadership has a significant relationship to the level of fairness of the organization. The findings of this study suggest that for Takaful organization to demonstrate high level of fairness, the leader needs to exhibit important behaviour such as peopleoriented, which emphasizes on fulfilling their staffs’ needs prior to making appropriate decision. Then, followed by task-oriented leadership, which is also capable in enhancing fairness practice. This study provides implications and conclusion